Business ethics and corporate social responsibility
An Anglo American case study

Page 1: Introduction

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Anglo American is one of the world”s leading mining companies. It is a UK public limited company and operates on a global scale. Anglo American operates mainly in the primary sector of the world economy. This, as the name suggests, covers industries involved in the first stage of economic activity, such as mining and agriculture. Anglo American operates throughout the world. It has...
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Page 2: What are business ethics?

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Business ethics are moral principles that guide the way a business behaves. The same principles that determine an individual”s actions also apply to business. Acting in an ethical way involves distinguishing between “right” and “wrong” and then making the “right” choice. It is relatively easy to identify unethical business practices. For example...
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Page 3: Why should a business act ethically?

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Businesses have great potential to transform people's lives and to alleviate poverty through generating economic growth. They produce goods and services that customers want and they create jobs. Through paying taxes, they contribute to government revenue that can finance schools, hospitals and other public services. However, a business must keep in tune with the wishes of the societies it...
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Page 4: What are the effects of acting ethically?

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Most business activity incurs financial costs such as equipment and labour. Non-financial costs include noise and impact on the environment. There is a financial cost to acting ethically. To engage stakeholders takes time and money. Mining in ways that minimise environmental impacts is more expensive than extracting resources regardless of impact.  An ethical business also...
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Page 5: The benefits of ethical behaviour

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Anglo American establishes goals each year for sustainable development. These goals include: working without fatal accidents eliminating occupational diseases increasing diversity in the workplace increasing the benefits of mining for local communities increasing energy efficiency.  By working towards these goals, Anglo American hopes to gain a competitive advantage. By...
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Page 6: Conclusion

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Anglo American is a multinational organisation with a high profile in the primary extractive sector. Because many new mineral deposits are to be found in developing countries, some of which have weak governance, Anglo American recognises that it must be rigorous in observing local laws, even if they are not always enforced. It has a significant role in supporting good governance initiatives and...
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